- Jul 13, 2015
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You can still pay less tax on the first $25,000 befote tax contributions.
And $100,000 after tax contributions can be put in a system where you pay no tax on the profits.
Seems pretty sweet to me.
The future for Super in Aus (not the political playground)
- Thread starter Kwality
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You can still pay less tax on the first $25,000 befote tax contributions.
And $100,000 after tax contributions can be put in a system where you pay no tax on the profits.
Seems pretty sweet to me.
Working in large payroll. It is pretty much the top 20% earnings wise contribute 80% of the Sal Sac into super. Most of our employees on the Executive Payroll ensure they hit the 25K cap
High incomes earners mandatory super is over 25k.
But if you invested yourself rather then through super, then only sold your shares Years later after you retired and effectively had 0 income would you pay tax anyway as you have zero income?
- Jul 13, 2015
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You can earn millions tax free through super. If done outside super you would be paying CGT, marginal tax, etc.
Well, actually, I think the cap for the best tax breaks is $1.6 million. Though it will increase over time.
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About $260k with the 9.5% will pretty much get someone there.
But what capital gains tax do you pay if you have no income? As long as you space your share sales to fund your basic living In retirement (say 50 grand a year) then you pay basically no tax on those investments anyway. So how is it any different?
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Why are you assuming no income ?
And you need to take in to account the accumulation phase.
Only 7 of 200 on the executive payroll, the high income earners were above the cap
Because in retirement you have no income. What is the accumulation phase?
- Jul 13, 2015
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The 30 or 40 or 50 years of contributing to your super where you get to take advantage of tax breaks.
And in retirement almost everyone gets at least some age pension.
But what tax advantages are there? You mention capital gains tax and marginal income tax rates but a retiree effectively doesnt pay any of those on investments outside of super. So what is the advantage of super?
if I invest money today but dont start selling my shares until after i retire then I dont pay Tax on the return of those shares assuming I only sell a small amount each year to fund my annual living As i have no other income.
- Jul 13, 2015
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You think people buy shares and never sell them for 40 or 50 years ?
- Thread starter
- #40
Not everyone is a share trader.
- Thread starter
- #41
The super industry looking to protect the status quo:
The Association of Superannuation Funds of Australia has warned the federal government not to hit superannuation as it prepares an emergency fiscal stimulus package to respond to the coronavirus crisis.
ASFA chief executive Martin Fahy called on the government to retain its commitment to increase the compulsory superannuation guarantee in stages from the current 9.5 per cent of salary to 12 per cent by July 2025.
The figure is due to increase to 10 per cent in July next year.
He also called on the government not to make any other changes to superannuation as it looks for new revenue measures to help its budgetary position.
.... Mr Fahy told The Australian the compulsory superannuation system was working well in terms of reducing potential demand on the age pension and allowing Australians to have a more dignified standard of retirement.
www.theaustralian.com.au
The Association of Superannuation Funds of Australia has warned the federal government not to hit superannuation as it prepares an emergency fiscal stimulus package to respond to the coronavirus crisis.
ASFA chief executive Martin Fahy called on the government to retain its commitment to increase the compulsory superannuation guarantee in stages from the current 9.5 per cent of salary to 12 per cent by July 2025.
The figure is due to increase to 10 per cent in July next year.
He also called on the government not to make any other changes to superannuation as it looks for new revenue measures to help its budgetary position.
.... Mr Fahy told The Australian the compulsory superannuation system was working well in terms of reducing potential demand on the age pension and allowing Australians to have a more dignified standard of retirement.
NoCookies | The Australian
- Jul 13, 2015
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Very few people are share hoarders. Plus, we are looking at people with disposable income. Not people scrounging to buy a nest egg.
- Thread starter
- #43
Why do say that?
Firestorm13
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- #45
Yet still pay tax
- Thread starter
- #46
Heard Adam Creighton asking about Super in the current crisis.
This is a great opportunity to get the 9% working for us now rather than sometime when.
This is a great opportunity to get the 9% working for us now rather than sometime when.
- Thread starter
- #47
A six-month suspension of compulsory super would inject about $60bn into the economy, via higher taxes for the government and higher wages for workers. It’s absurd to ring fence $3 trillion of our own savings in a major crisis – even more so to keep adding to them.
www.theaustralian.com.au
Surely this is being discussed?
NoCookies | The Australian
Surely this is being discussed?
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A six-month suspension of compulsory super would inject about $60bn into the economy, via higher taxes for the government and higher wages for workers. It’s absurd to ring fence $3 trillion of our own savings in a major crisis – even more so to keep adding to them.
NoCookies | The Australian
Surely this is being discussed?
Then you reduce those workers future returns and will increase future welfare budgets.
It is a economically dumb policy.
- Thread starter
- #49
The today benefits v the future benefits have been covered earlier in this thread. When I kicked off this thread I held your view, I'm not sure where I stand at present. Its a discussion not a poll.
- Thread starter
- #50
I find it interesting that pausing the 9.5% contribution is not in the mix at this time.
Given 360,000* are seeking to draw on these funds it cant be ignored as ongoing plans are drawn up to rebuild the economy.
My read of why the compulsory contribution has been off the table is the Super Funds need the cash flow, given the Funds seeking Fed support to meet the withdrawals.
* https://www.theaustralian.com.au/bu...e/news-story/37759740875674635be4e831b9e69566
By the end of Thursday, April 2, about 361,000 people had registered their interest through the MyGov portal — roughly 2.5 per cent of Australia’s 15 million super members.
While the government has forecast a total of about $27bn will be drawn down under the scheme, the super sector fears the total could be in excess of $50bn, which would pressure some smaller cash-starved funds to engage in a fire sale of assets — further lowering the value of already depressed asset values — or liquidate long-term positions in infrastructure or property holdings.
Given 360,000* are seeking to draw on these funds it cant be ignored as ongoing plans are drawn up to rebuild the economy.
My read of why the compulsory contribution has been off the table is the Super Funds need the cash flow, given the Funds seeking Fed support to meet the withdrawals.
* https://www.theaustralian.com.au/bu...e/news-story/37759740875674635be4e831b9e69566
By the end of Thursday, April 2, about 361,000 people had registered their interest through the MyGov portal — roughly 2.5 per cent of Australia’s 15 million super members.
While the government has forecast a total of about $27bn will be drawn down under the scheme, the super sector fears the total could be in excess of $50bn, which would pressure some smaller cash-starved funds to engage in a fire sale of assets — further lowering the value of already depressed asset values — or liquidate long-term positions in infrastructure or property holdings.
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